Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF).

HFL Free Cash Flow Analysis

Free cash flow, a measure commonly used by analysts to assess a company's profitability, represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

The Free Cash Flow is calculated using a number of methods including using Operating Cash Flow. Following is the formula to calculate Free Cash Flow based on Operating Cash Flow.

Free Cash Flow = Operating Cash Flow - Capital Expenditures

Using above formula to calculate Free Cash Flow for Henderson Far East Income Limited (HFL), the free cash flow value is -5.00M.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

Henderson Far East Income Limited has a negative free cash flow as per the latest annual Cash flow statement released by the company. Positive free cash flow is cruscial for the financial health of a company, which can be used to pay dividends, expand operations, and deleverage its balance sheet (i.e., reduce debt).

HFL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Henderson Far East Income Limited (NZX:HFL).

31 Aug 202131 Aug 202031 Aug 201931 Aug 2018
Net Income29.68M-48.82M28.31M6.59M
Change To Netincome-39.63M54.85M-13.22M-547k
Change To Liabilities943k41k1.23M-145k
Change To Operating Activities4.01M-4.29M-1.5M167k
Total Cash From Operating Activities-5M1.78M14.81M6.07M
Dividends Paid-34.04M-31.65M-28.09M-25.99M
Net Borrowings17.27M-8.89M-15.94M-536k
Other Cashflows From Financing Activities-108k-182k-84k-69k
Total Cash From Financing Activities14.3M-3.26M-16.13M-8.61M
Effect Of Exchange Rate504k-1M555k-585k
Change In Cash9.81M-2.48M-757k-3.12M
Issuance Of Stock31.19M37.46M27.98M17.98M